Annual report [Section 13 and 15(d), not S-K Item 405]

STOCK-BASED COMPENSATION

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STOCK-BASED COMPENSATION
 12 Months Ended
Dec. 31, 2024
Share-Based Payment Arrangement [Abstract]  
STOCK-BASED COMPENSATION
NOTE 19—STOCK-BASED COMPENSATION
2011 and 2021 Equity Incentive Plans
The Company has two equity incentive plans: Old PLAYSTUDIOS' 2011 Omnibus Stock and Incentive Plan (the “2011 Plan”) and the 2021 Equity Incentive Plan (the “2021 Plan”). The 2021 Plan provides for the grant of non-qualified stock options, incentive stock options, stock appreciation rights, restricted stock, restricted stock units and other stock awards, and performance awards to employees, officers, non-employee directors and independent service providers of the Company. The 2021 Plan replaced the 2011 Plan in June 2021. No additional awards will be available for future issuance under the 2011 Plan.
The number of shares of Class A common stock available under the 2021 Plan will increase annually on the first day of each calendar year, beginning with the calendar year ended December 31, 2022, with such annual increase equal to the lesser of (i) 5% of the number of shares of common stock issued and outstanding on the last business day of the immediately preceding fiscal year and (ii) an amount determined by the Company's Board of Directors. If any award (or any award under the 2011 Plan) is forfeited, cancelled, expires, terminates or otherwise lapses or is settled in cash, in whole or in part, without the delivery of Class A common stock or Class B common stock, then the shares (including both the Class A common stock and Class B common stock) covered by such forfeited, expired, terminated or lapsed award shall again be available as shares for grant under the 2021 Plan.
As of December 31, 2024, a total of 37.5 million shares of the Company’s Class A common stock had been allocated to awards granted under the 2021 Plan and 13.5 million of those shares remained available for future grants.
Stock-Based Compensation
The following table summarizes stock-based compensation expense that the Company recorded in loss from operations for the periods shown:
Years Ended December 31,
2024 2023
Selling and marketing $ 1,268  $ 621 
General and administrative 10,187  9,236 
Research and development 6,658  8,865 
Stock-based compensation expense $ 18,113  $ 18,722 
Capitalized stock-based compensation $ 1,308  $ 1,800 
Stock Options
All of the options granted under the 2011 Plan have time-based vesting periods vesting over a period of three to four years and a maximum term of 10 years from the grant date.
The following is a summary of stock option activity for time-based options for the year ended December 31, 2024 (in thousands, except weighted-average exercise price and weighted average remaining contractual term).
No. of
Options		 Weighted-Average
Exercise Price
Weighted-Average Remaining Contractual Term (in Years)
 Aggregate
Intrinsic Value
Outstanding - December 31, 2022 9,222  $ 1.11 
Granted
 —  $ — 
Exercised
 (3,672) $ 0.85  12,257 
Forfeited
 (79) $ 1.89 
Expired
 (76) $ 1.63 
Outstanding - December 31, 2023 5,395  $ 1.27  4.1
Granted —  — 
Exercised (287) 1.00  280 
Forfeited (2) 6.18 
Expired (36) 2.77 
Outstanding - December 31, 2024 5,070  1.28  2.9 $ 3,606 
Unvested - December 31, 2024 1  7.85  6.1 — 
Exercisable - December 31, 2024 5,069  1.28  2.9 3,606 
As of December 31, 2024, there were 5.1 million options outstanding, of which 3.2 million options are issuable into Class A common stock and 1.9 million options are issuable into Class B common stock. As of December 31, 2024, there was an immaterial amount of unrecognized compensation expense related to stock options granted to employees.
Restricted Stock Units ("RSUs")
The following is a summary of RSU activity for the year ended December 31, 2024 (in thousands, except weighted-average grant date fair value):
No. of
RSUs		 Weighted-Average Grant Date Fair Value Total Fair Value of Shares Vested
Outstanding - December 31, 2022 11,521  $ 4.28 
Granted
 4,704  3.87 
Vested
 (3,239) 4.26  $ 13,788 
Forfeited
 (1,284) 4.12 
Outstanding - December 31, 2023 11,702  $ 4.15 
Granted 8,639  1.99 
Vested (5,832) 3.88  $ 22,639 
Forfeited (1,789) 3.56 
Outstanding - December 31, 2024 12,720  $ 2.87 
As of December 31, 2024, there was approximately $26.4 million of total unrecognized compensation expense related to RSUs granted to employees and other service providers and this cost is expected to be recognized over a remaining average period of 2.1 years. The total intrinsic value of RSUs vested during the years ended December 31, 2024 and 2023, was $12.4 million and $12.4 million, respectively.
Performance Stock Units ("PSUs")
The following is a summary of PSU activity for the year ended December 31, 2024 (in thousands, except weighted-average grant date fair value):
No. of
PSUs
 Weighted-Average Grant Date Fair Value Total Fair Value of Shares Vested
Outstanding - December 31, 2023 —  $ — 
Granted 342  2.20
Vested —  —  $ — 
Forfeited —  — 
Outstanding - December 31, 2024 342  $ 2.20 
The PSUs are not expected to vest so no stock compensation was recognized during the year ended December 31, 2024. There was no unrecognized compensation expense as of the year ended December 31, 2024.